Franchises–Where Fools Rush In…

Posted on January 21, 2015 in Business Transactions

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Franchises can be an attractive way to start a business. There’s already a system in place; you know (if you’ve done your due diligence) it’s a proven, profitable model; and the franchisor provides you with ready resources.

But “fools rush in where angels fear to tread,” said English poet Alexander Pope. And franchises can be a particularly thorny business model if you don’t investigate them carefully. They are subject to a lot of regulations, and the fine print (you know, that microscopic text filled with legalese) will hurt you if you are not aware of its provisions. As Iowa business attorney Rush Nigut points out in his post on franchises, “Four Things That Make You Go Hmmm . . . ,” there are some red flags that should make you not only think twice about investing in a particular franchise, but stop in your tracks, turn 180 degrees, and walk the other way. Read on to find out that they are!

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